Bitcoin ETFs see $1.3B in inflows despite global risks
Bitcoin demand grows with falling exchange supply
Bitcoin has shown remarkable resilience against the backdrop of growing geopolitical instability, as exchange-traded funds (ETFs) recorded five consecutive days of capital inflows, totaling over $1.3 billion.
According to Farside Investors, starting Monday, June 9, institutional investors poured significant capital into spot Bitcoin ETFs. Monday alone saw inflows of $386 million, followed by another $301 million by Friday—marking a sharp reversal from the $128 million in outflows recorded the previous week.
The iShares Bitcoin ETF from BlackRock (ticker: IBIT) led the trend, attracting $238 million in a single day. The total inflows into IBIT have approached $50 billion, and the fund’s assets under management now stand at $70 billion. If the current momentum continues, IBIT could soon catch up with the SPDR Gold Trust, which holds $103 billion in assets. Fidelity’s FBTC ETF has drawn over $11 billion, while Bitwise’s BITB has reached $2 billion since launch. This surge in demand highlights the growing institutional interest in Bitcoin, especially during times of global uncertainty.
BTC price resilience amid geopolitical risks
Following Israeli airstrikes on Iran, Bitcoin’s price briefly dipped below $103,000 but quickly rebounded to around $105,000. This recovery occurred despite $422 million in liquidated long positions, indicating strong buyer support—likely driven by ETF investors capitalizing on the dip, according to Cointelegraph.
BTC price action. Source: TradingView
Nic Puckrin of Coin Bureau emphasized that while conflicts such as the Israel-Iran situation may influence markets in the short term, long-term trends are more dependent on macroeconomic indicators like the weakening U.S. Dollar Index (DXY). However, he warned that a closure of the Strait of Hormuz—which handles 20% of the world’s oil shipments—could cause severe market shocks.
Supply squeeze and long-term growth potential for BTC
Meanwhile, the amount of Bitcoin held on exchanges has dropped from 1.5 million in January to 1.1 million, signaling reduced selling pressure. Combined with increasing capital inflows, this supply squeeze could drive further price growth.
Technical analysis indicates that Bitcoin may be on the verge of breaking out of a years-long sideways trend. Optimistic forecasts predict a price of $1 million in the medium term and up to $2.3 million by 2030. Despite geopolitical shocks, Bitcoin is currently only 6% below its all-time high, underscoring its resilience and growing role as a hedge against systemic risk.
Read also: Brazil Plans to Allocate 5% of Reserves to Bitcoin
